CBI books 12 in powerloom upgradation subsidy fraud

The CBI has registered a case against 12, including 6 officials of the Textile Ministry and 6 Bhiwandi-based suppliers for allegedly duping the Ministry by availing fraudulent subsidies worth ₹6.46 crore meant for power-loom upgradation. The accused had used dubious stamp papers and claimed subsidies in the name of ineligible beneficiaries.

MUMBAI: The Central Bureau of Investigation (CBI) has registered a case against 12 persons, including six officials of the Textile Ministry and six Bhiwandi-based suppliers, for their alleged roles in duping the Textile Ministry by their fraudulent availing of subsidy worth ₹6.46 crore meant for power-loom upgradation.

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The accused persons had allegedly approved/procured a subsidy in the name of 719 ineligible beneficiaries by using dubious stamp papers bearing a single number to lay claim for the incentives, CBI sources said.

The accused are booked for abusing official position, criminal conspiracy, forgery, cheating and criminal misconduct under relevant sections of the Indian Penal Code and the Prevention of Corruption Act.

The case is based on a complaint received in January 2022 from an undersecretary to the Government of India, (Vigilance Section), Ministry of Textiles.

It was said in the complaint that the Ministry had devised an upgradation scheme for powerloom based in clusters during 2016 - 2017 via the Textile Commissioner, Mumbai. It was required by officials to visit the powerloom units and conduct “super checks” periodically to confirm the Unique Number engraved on the upgraded power looms, for which the subsidy was disbursed, CBI sources said.

In the case of the Bhiwandi powerloom cluster, there was allegedly an abnormal surge in cases in which the benefits under the said scheme were proposed, the sources said.

“The report of the Enquiry Committee of the Ministry of Textiles revealed that during the period 2017-2018, the accused public servants and the private persons had allegedly hatched the criminal conspiracy, in pursuance of which the subsidy to the tune of over ₹6.46 crore was applied, approved and received from the Ministry of Textiles with respect to the upgradation scheme”, a source said.

“There were 719 ineligible cases”, the source added.